WARREN, Penn., Jan. 25, 2016 /PRNewswire/ -- Northwest Bancshares, Inc. (NasdaqGS: NWBI) announced net income for the quarter ended December 31, 2015 of $16.2 million, or $0.16 per diluted share. This represents a decrease of $1.1 million, or 6.6%, compared to the same quarter last year when net income was $17.3 million, or $0.19 per diluted share. The annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2015 were 5.83% and 0.77% compared to 6.42% and 0.88% for the same quarter last year. Earnings for the current quarter include acquisition expenses of $1.3 million relating to the merger of LNB Bancorp, Inc. ("LNB") on August 14, 2015. Excluding the after-tax impact of these expenses, non-GAAP net operating income for the quarter was $17.1 million, or $0.17 per diluted share. The non-GAAP annualized returns on average shareholders' equity and average assets for the quarter ended December 31, 2015 were 6.16% and 0.82%.
The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.15 per share payable on February 18, 2016, to shareholders of record as of February 4, 2016. This represents a 7.1% increase over the prior quarter and is the 85th consecutive quarter in which the Company has paid a cash dividend.
In making this announcement, William J. Wagner, President and CEO, noted, "2015 was an exciting year for Northwest as we completed the largest acquisition in the history of our company and with that, established a solid foundation for future growth in northeastern Ohio. Our fourth quarter earnings demonstrate the significant impact that this franchise will have on Northwest's core earnings. We also were pleased to continue to realize solid internal growth in our areas of primary focus, with loans growing by 5% and checking balances increasing by 10%. Looking ahead, we will continue to pursue strategies to strengthen our balance sheet by diversifying our loan and deposit mixes while also pursuing opportunities to enhance efficiency in all areas of operations."
Net interest income increased by $8.6 million, or 13.7%, to $71.2 million for the quarter ended December 31, 2015, from $62.6 million for the quarter ended December 31, 2014. This increase was due primarily to an increase in interest income on loans receivable of $9.7 million, or 13.6%, as a result of internal loan growth of $304.1 million over the prior year, while the LNB acquisition provided net loans of $928.1 million. Partially offsetting this increase was a decrease in interest received on tax-free investment securities of $631,000 and an increase in interest expense of $504,000 due primarily to the addition of $1.034 billion in deposits from the LNB acquisition.
The provision for loan losses increased by $3.5 million to $4.6 million for the quarter ended December 31, 2015, from $1.1 million for the quarter ended December 31, 2014. This increase is due primarily to the prior year provision being one of the lowest quarterly provisions over the past seven years. Asset quality improved compared to last year as classified loans decreased $24.4 million, or 11.2%, and total nonaccrual loans decreased $8.1 million, or 10.2%.
Noninterest income increased by $2.3 million, or 13.5%, to $19.5 million for the quarter ended December 31, 2015, from $17.2 million for the quarter ended December 31, 2014. This improvement is due primarily to an increase in service charges and fees of $1.2 million, or 13.6%. This increase was attributable to additional fees earned from the continued growth in checking accounts, as well as from the additional loan and deposit accounts provided by the LNB acquisition. Additionally, other operating income increased by $892,000, or 110.8%, due primarily to recoveries on loans acquired from LNB.
Noninterest expense increased by $6.0 million, or 10.9%, to $61.2 million for the quarter ended December 31, 2015, from $55.2 million for the quarter ended December 31, 2014. This increase was due primarily to a $1.3 million, or 19.9%, increase in processing expenses, due primarily to technology upgrades and the additional costs associated with the 21 offices acquired during the third quarter. Acquisition expense and premises and occupancy costs increased by $953,000 and $887,000, respectively, as a result of LNB merger and the costs associated with the acquired properties.
Income tax expense increased by $2.5 million, or 40.3%, to $8.7 million for the quarter ended December 31, 2015 from $6.2 million for the quarter ended December 31, 2014. This increase relates to the increase in net income before tax and the uncertainty of Pennsylvania's Education Improvement Tax credit program. Due to this uncertainty, the Company did not participate in the program during the current year.
Net income for the year ended December 31, 2015 of $60.5 million represents a decrease of $1.5 million, or 2.3%, compared to net income of $62.0 million for the year ended December 31, 2014. This decrease in annual earnings was due to $9.8 million of acquisition expenses, a $3.9 million, or 3.3%, increase in compensation and employee benefits as a result of the LNB acquisition, a $4.1 million, or 15.4%, increase in processing expense due primarily to recent technology upgrades, and a $6.2 million increase in income tax expense due primarily to a decrease in interest income from tax-free municipal bonds, as well as lower state tax credits. These factors were partially offset by a $14.4 million, or 5.8%, increase in net interest income and a $10.6 million, or 52.2%, decrease in the provision for loan losses. Diluted earnings per share for the year ended December 31, 2015 decreased to $0.64 per share from $0.67 per share last year. The annualized returns on average shareholders' equity and average assets were 5.49% and 0.73%, respectively, for the current year compared to 5.69% and 0.79%, respectively, in the prior year. Excluding the after-tax impact of $9.8 million of acquisition expenses, non-GAAP net operating income for the year was $67.0 million, or $0.71 per diluted share. The non-GAAP annualized returns on average shareholders' equity and average assets for the year ended December 31, 2015 were 6.08% and 0.80%.
The Company also announced plans to optimize its office network. In recent years, the Company has invested heavily in alternative delivery channels such as online and mobile banking, depository ATMs, and automated telephone banking which enables customers to transact business outside of the branch and beyond normal business hours. As a result, the number of transactions conducted in offices has significantly decreased over the past several years and has created an opportunity to improve operating efficiency. Based on these changes in customer preferences, the Company expects by mid-year 2016 to consolidate 24 of its offices into nearby locations and convert two full-service offices into drive-up only facilities. Expenses associated with these changes are expected to be approximately $5.0 million, which will be incurred during the first half of 2016, and the annual reduction in pre-tax operating expenses beginning in 2017 is expected to be between $5.0 million and $6.0 million.
Headquartered in Warren, Pennsylvania, Northwest Bancshares, Inc. is the holding company of Northwest Bank. Founded in 1896, Northwest Bank is a full-service financial institution offering a complete line of business and personal banking products, employee benefits and wealth management services, as well as the fulfillment of business and personal insurance needs. Northwest operates 176 full-service community banking offices in Pennsylvania, New York, Ohio and Maryland, five free standing drive-up facilities in Pennsylvania, and 51 consumer finance offices in Pennsylvania through its subsidiary, Northwest Consumer Discount Company. Northwest Bancshares, Inc.'s common stock is listed on the NASDAQ Global Select Market ("NWBI"). Additional information regarding Northwest Bancshares, Inc. and Northwest Savings Bank can be accessed on-line at www.northwestsavingsbank.com.
Forward-Looking Statements - This release may contain forward-looking statements with respect to the financial condition and results of operations of Northwest Bancshares, Inc. including, without limitations, statements relating to the earnings outlook of the Company. These forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include among others, the following possibilities: (1) changes in the interest rate environment; (2) competitive pressure among financial services companies; (3) general economic conditions including an increase in non-performing loans; (4) changes in legislation or regulatory requirements; (5) difficulties in continuing to improve operating efficiencies; (6) difficulties in the integration of acquired businesses; and (7) increased risk associated with commercial real-estate and business loans. Management has no obligation to revise or update these forward-looking statements to reflect events or circumstances that arise after the date of this release.
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Consolidated Statements of Financial Condition
|
|
(Dollars in thousands, except per share amounts)
|
|
|
|
December 31,
|
|
December 31,
|
|
Assets
|
|
2015
|
|
2014
|
|
Cash and cash equivalents
|
|
$
|
92,263
|
|
|
87,401
|
|
|
Interest-earning deposits in other financial institutions
|
|
74,510
|
|
|
152,671
|
|
|
Federal funds sold and other short-term investments
|
|
635
|
|
|
634
|
|
|
Marketable securities available-for-sale (amortized cost of $868,956 and $906,702)
|
|
874,405
|
|
|
912,371
|
|
|
Marketable securities held-to-maturity (fair value of $32,552 and $106,292)
|
|
31,689
|
|
|
103,695
|
|
|
Total cash, interest-earning deposits and marketable securities
|
|
1,073,502
|
|
|
1,256,772
|
|
|
|
|
|
|
|
Residential mortgage loans
|
|
2,750,564
|
|
|
2,521,456
|
|
|
Home equity loans
|
|
1,187,106
|
|
|
1,066,131
|
|
|
Other consumer loans
|
|
510,617
|
|
|
242,744
|
|
|
Commercial real estate loans
|
|
2,351,434
|
|
|
1,801,184
|
|
|
Commercial loans
|
|
422,400
|
|
|
358,376
|
|
|
Total loans receivable
|
|
7,222,121
|
|
|
5,989,891
|
|
|
Allowance for loan losses
|
|
(62,672)
|
|
|
(67,518)
|
|
|
Loans receivable, net
|
|
7,159,449
|
|
|
5,922,373
|
|
|
|
|
|
|
|
Federal Home Loan Bank stock, at cost
|
|
40,903
|
|
|
33,293
|
|
|
Accrued interest receivable
|
|
21,072
|
|
|
18,623
|
|
|
Real estate owned, net
|
|
8,725
|
|
|
16,759
|
|
|
Premises and Equipment, net
|
|
154,351
|
|
|
143,909
|
|
|
Bank owned life insurance
|
|
168,509
|
|
|
144,362
|
|
|
Goodwill
|
|
261,736
|
|
|
175,323
|
|
|
Other intangible assets
|
|
8,982
|
|
|
3,033
|
|
|
Other assets
|
|
54,670
|
|
|
60,586
|
|
|
Total assets
|
|
$
|
8,951,899
|
|
|
7,775,033
|
|
|
|
|
|
|
|
Liabilities and Shareholders' equity
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
|
$
|
1,177,256
|
|
|
$
|
891,248
|
|
|
Interest-bearing demand deposits
|
|
1,080,086
|
|
|
874,623
|
|
|
Money market deposit accounts
|
|
1,274,504
|
|
|
1,179,070
|
|
|
Savings deposits
|
|
1,386,017
|
|
|
1,209,287
|
|
|
Time deposits
|
|
1,694,718
|
|
|
1,478,314
|
|
|
Total deposits
|
|
6,612,581
|
|
|
5,632,542
|
|
|
Borrowed funds
|
|
975,007
|
|
|
888,109
|
|
|
Advances by borrowers for taxes and insurance
|
|
33,735
|
|
|
30,507
|
|
|
Accrued interest payable
|
|
1,993
|
|
|
936
|
|
|
Other liabilities
|
|
54,207
|
|
|
57,198
|
|
|
Junior subordinated debentures
|
|
111,213
|
|
|
103,094
|
|
|
Total liabilities
|
|
7,788,736
|
|
|
6,712,386
|
|
|
|
|
|
|
|
Shareholders' equity
|
|
|
|
|
|
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares issued
|
|
—
|
|
|
—
|
|
|
Common stock, $0.01 par value: 500,000,000 shares authorized, 101,871,737 shares and 94,721,453 shares issued and outstanding, respectively
|
|
1,019
|
|
|
947
|
|
|
Paid-in-capital
|
|
717,603
|
|
|
626,134
|
|
|
Retained earnings
|
|
489,292
|
|
|
481,577
|
|
|
Unallocated common stock of Employee Stock Ownership Plan
|
|
(20,216)
|
|
|
(21,641)
|
|
|
Accumulated other comprehensive loss
|
|
(24,535)
|
|
|
(24,370)
|
|
|
Total shareholders' equity
|
|
1,163,163
|
|
|
1,062,647
|
|
|
Total liabilities and shareholders' equity
|
|
$
|
8,951,899
|
|
|
7,775,033
|
|
|
|
|
|
|
|
Equity to assets
|
|
12.99
|
%
|
|
13.67
|
%
|
|
Tangible common equity to assets
|
|
10.28
|
%
|
|
11.64
|
%
|
|
Book value per share
|
|
$
|
11.42
|
|
|
11.22
|
|
|
Tangible book value per share
|
|
$
|
8.76
|
|
|
9.34
|
|
|
Closing market price per share
|
|
$
|
13.39
|
|
|
12.53
|
|
|
Full time equivalent employees
|
|
2,186
|
|
|
2,042
|
|
|
Number of banking offices
|
|
181
|
|
|
162
|
|
|
|
|
|
|
|
|
|
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Consolidated Statements of Income
|
|
(Dollars in thousands, except per share amounts)
|
|
|
Quarter ended
|
|
December 31,
|
|
September 30,
|
|
2015
|
|
2014
|
|
2015
|
|
Interest income:
|
|
|
|
|
|
|
Loans receivable
|
$
|
80,882
|
|
|
$
|
71,182
|
|
|
76,087
|
|
|
Mortgage-backed securities
|
2,301
|
|
|
2,357
|
|
|
2,230
|
|
|
Taxable investment securities
|
1,108
|
|
|
1,032
|
|
|
1,238
|
|
|
Tax-free investment securities
|
836
|
|
|
1,467
|
|
|
986
|
|
|
FHLB dividends
|
499
|
|
|
383
|
|
|
451
|
|
|
Interest-earning deposits
|
13
|
|
|
164
|
|
|
99
|
|
|
Total interest income
|
85,639
|
|
|
76,585
|
|
|
81,091
|
|
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
|
|
Deposits
|
6,435
|
|
|
6,106
|
|
|
6,163
|
|
|
Borrowed funds
|
8,051
|
|
|
7,876
|
|
|
7,987
|
|
|
Total interest expense
|
14,486
|
|
|
13,982
|
|
|
14,150
|
|
|
|
|
|
|
|
|
Net interest income
|
71,153
|
|
|
62,603
|
|
|
66,941
|
|
|
Provision for loan losses
|
4,595
|
|
|
1,078
|
|
|
3,167
|
|
|
Net interest income after provision for loan losses
|
66,558
|
|
|
61,525
|
|
|
63,774
|
|
|
|
|
|
|
|
|
Gain on sale of investments
|
116
|
|
|
381
|
|
|
260
|
|
|
Service charges and fees
|
10,530
|
|
|
9,268
|
|
|
9,945
|
|
|
Trust and other financial services income
|
3,410
|
|
|
3,291
|
|
|
3,062
|
|
|
Insurance commission income
|
2,490
|
|
|
2,181
|
|
|
2,398
|
|
|
Loss on real estate owned, net
|
(156)
|
|
|
(30)
|
|
|
(246)
|
|
|
Income from bank owned life insurance
|
1,251
|
|
|
1,057
|
|
|
1,166
|
|
|
Mortgage banking income
|
208
|
|
|
269
|
|
|
267
|
|
|
Other operating income
|
1,697
|
|
|
805
|
|
|
1,288
|
|
|
Total noninterest income
|
19,546
|
|
|
17,222
|
|
|
18,140
|
|
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
|
|
Compensation and employee benefits
|
32,003
|
|
|
31,405
|
|
|
31,000
|
|
|
Premises and occupancy costs
|
6,403
|
|
|
5,516
|
|
|
6,072
|
|
|
Office operations
|
4,504
|
|
|
3,677
|
|
|
3,892
|
|
|
Processing expenses
|
8,057
|
|
|
6,720
|
|
|
8,126
|
|
|
Marketing expenses
|
1,642
|
|
|
1,434
|
|
|
1,691
|
|
|
Federal deposit insurance premiums
|
1,299
|
|
|
1,316
|
|
|
1,177
|
|
|
Professional services
|
1,933
|
|
|
1,970
|
|
|
1,529
|
|
|
Amortization of intangible assets
|
729
|
|
|
331
|
|
|
422
|
|
|
Real estate owned expense
|
393
|
|
|
406
|
|
|
471
|
|
|
Acquisition expense
|
1,347
|
|
|
394
|
|
|
7,590
|
|
|
Other expense
|
2,917
|
|
|
2,043
|
|
|
1,834
|
|
|
Total noninterest expense
|
61,227
|
|
|
55,212
|
|
|
63,804
|
|
|
|
|
|
|
|
|
Income before income taxes
|
24,877
|
|
|
23,535
|
|
|
18,110
|
|
|
Income tax expense
|
8,684
|
|
|
6,190
|
|
|
5,238
|
|
|
|
|
|
|
|
|
Net income
|
$
|
16,193
|
|
|
$
|
17,345
|
|
|
12,872
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
$
|
0.16
|
|
|
$
|
0.19
|
|
|
0.14
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
$
|
0.16
|
|
|
$
|
0.19
|
|
|
0.13
|
|
|
|
|
|
|
|
|
Annualized return on average equity
|
5.83
|
%
|
|
6.42
|
%
|
|
4.54
|
%
|
|
Annualized return on average assets
|
0.77
|
%
|
|
0.88
|
%
|
|
0.59
|
%
|
|
|
|
|
|
|
|
Basic common shares outstanding
|
98,741,393
|
|
|
91,741,487
|
|
|
95,256,807
|
|
|
Diluted common shares outstanding
|
99,500,056
|
|
|
92,103,069
|
|
|
95,825,798
|
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Consolidated Statements of Income
|
|
(Dollars in thousands, except per share amounts)
|
|
|
Year ended
December 31,
|
|
2015
|
|
2014
|
|
Interest income:
|
|
|
|
|
Loans receivable
|
$
|
298,665
|
|
|
282,050
|
|
|
Mortgage-backed securities
|
8,823
|
|
|
10,320
|
|
|
Taxable investment securities
|
4,520
|
|
|
4,130
|
|
|
Tax-free investment securities
|
4,313
|
|
|
6,281
|
|
|
FHLB dividends
|
2,828
|
|
|
1,809
|
|
|
Interest-earning deposits
|
431
|
|
|
837
|
|
|
Total interest income
|
319,580
|
|
|
305,427
|
|
|
|
|
|
|
Interest expense:
|
|
|
|
|
Deposits
|
24,055
|
|
|
25,322
|
|
|
Borrowed funds
|
32,272
|
|
|
31,265
|
|
|
Total interest expense
|
56,327
|
|
|
56,587
|
|
|
|
|
|
|
Net interest income
|
263,253
|
|
|
248,840
|
|
|
Provision for loan losses
|
9,712
|
|
|
20,314
|
|
|
Net interest income after provision for loan losses
|
253,541
|
|
|
228,526
|
|
|
|
|
|
|
Noninterest income:
|
|
|
|
|
Gain on sale of investments
|
1,037
|
|
|
4,930
|
|
|
Service charges and fees
|
38,362
|
|
|
36,383
|
|
|
Trust and other financial services income
|
12,342
|
|
|
12,369
|
|
|
Insurance commission income
|
9,526
|
|
|
8,760
|
|
|
Loss on real estate owned, net
|
(1,989)
|
|
|
(967)
|
|
|
Income from bank owned life insurance
|
4,338
|
|
|
4,191
|
|
|
Mortgage banking income
|
933
|
|
|
1,022
|
|
|
Other operating income
|
4,287
|
|
|
4,078
|
|
|
Total noninterest income
|
68,836
|
|
|
70,766
|
|
|
|
|
|
|
Noninterest expense:
|
|
|
|
|
Compensation and employee benefits
|
119,818
|
|
|
115,967
|
|
|
Premises and occupancy costs
|
24,641
|
|
|
23,455
|
|
|
Office operations
|
15,584
|
|
|
14,721
|
|
|
Processing expenses
|
30,780
|
|
|
26,671
|
|
|
Marketing expenses
|
8,499
|
|
|
8,213
|
|
|
Federal deposit insurance premiums
|
5,109
|
|
|
5,193
|
|
|
Professional services
|
6,906
|
|
|
7,661
|
|
|
Amortization of intangible assets
|
1,688
|
|
|
1,323
|
|
|
Real estate owned expense
|
2,070
|
|
|
2,140
|
|
|
Acquisition expense
|
9,751
|
|
|
394
|
|
|
Other expense
|
9,031
|
|
|
9,797
|
|
|
Total noninterest expense
|
233,877
|
|
|
215,535
|
|
|
|
|
|
|
Income before income taxes
|
88,500
|
|
|
83,757
|
|
|
Income tax expense
|
27,960
|
|
|
21,795
|
|
|
|
|
|
|
Net income
|
$
|
60,540
|
|
|
61,962
|
|
|
|
|
|
|
Basic earnings per share
|
$
|
0.64
|
|
|
0.68
|
|
|
|
|
|
|
Diluted earnings per share
|
$
|
0.64
|
|
|
0.67
|
|
|
|
|
|
|
Annualized return on average equity
|
5.49
|
%
|
|
5.69
|
%
|
|
Annualized return on average assets
|
0.73
|
%
|
|
0.79
|
%
|
|
|
|
|
|
Basic common shares outstanding
|
94,314,420
|
|
|
91,535,298
|
|
|
Diluted common shares outstanding
|
94,829,789
|
|
|
92,274,997
|
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Reconciliation of Non-GAAP to GAAP Net Income *
|
|
(Dollars in thousands, except per share amounts)
|
|
|
Quarter ended
|
|
Year ended
|
|
December 31,
|
|
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Operating results (non-GAAP):
|
|
|
|
|
|
|
|
|
Net interest income
|
$
|
71,153
|
|
|
62,603
|
|
|
263,253
|
|
|
248,840
|
|
|
Provision for loan losses
|
4,595
|
|
|
1,078
|
|
|
9,712
|
|
|
20,314
|
|
|
Noninterest income
|
19,546
|
|
|
17,222
|
|
|
68,836
|
|
|
70,766
|
|
|
Noninterest expense
|
59,880
|
|
|
55,212
|
|
|
224,126
|
|
|
215,535
|
|
|
Income taxes
|
9,111
|
|
|
6,190
|
|
|
31,239
|
|
|
21,795
|
|
|
Net operating income (non-GAAP)
|
$
|
17,113
|
|
|
17,345
|
|
|
67,012
|
|
|
61,962
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (non-GAAP)
|
$
|
0.17
|
|
|
0.19
|
|
|
0.71
|
|
|
0.67
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of net operating income to net income:
|
$
|
17,113
|
|
|
17,345
|
|
|
67,012
|
|
|
61,962
|
|
|
Net operating income (non-GAAP)
|
|
|
|
|
|
|
|
|
Non-operating expenses, net of tax:
|
|
|
|
|
|
|
|
|
Acquisition expenses, net of tax benefit
|
(920)
|
|
|
—
|
|
|
(6,472)
|
|
|
—
|
|
|
Net income (GAAP)
|
$
|
16,193
|
|
|
17,345
|
|
|
60,540
|
|
|
61,962
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share (GAAP)
|
$
|
0.16
|
|
|
0.19
|
|
|
0.64
|
|
|
0.67
|
|
|
|
* - The table summarizes the Company's results from operations on a GAAP basis and on an operating (non-GAAP) basis for the periods indicated. Operating results exclude acquisition expenses, net of tax benefit. The Company believe this non-GAAP presentation provides a meaningful comparison of operational performance and facilitates a more effective evaluation and comparison of results to assess performance in relation to ongoing operations.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Asset quality
|
|
(Dollars in thousands)
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2012
|
|
Nonaccrual loans current:
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$
|
1,393
|
|
|
1,169
|
|
|
1,361
|
|
|
797
|
|
|
Home equity loans
|
1,108
|
|
|
1,527
|
|
|
835
|
|
|
635
|
|
|
Other consumer loans
|
140
|
|
|
88
|
|
|
98
|
|
|
44
|
|
|
Commercial real estate loans
|
14,018
|
|
|
23,703
|
|
|
17,866
|
|
|
24,960
|
|
|
Commercial loans
|
4,604
|
|
|
5,917
|
|
|
13,357
|
|
|
5,424
|
|
|
Total nonaccrual loans current
|
$
|
21,263
|
|
|
32,404
|
|
|
33,517
|
|
|
31,860
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans delinquent 30 days to 59 days:
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$
|
430
|
|
|
1,545
|
|
|
427
|
|
|
—
|
|
|
Home equity loans
|
375
|
|
|
712
|
|
|
404
|
|
|
—
|
|
|
Other consumer loans
|
97
|
|
|
48
|
|
|
15
|
|
|
—
|
|
|
Commercial real estate loans
|
2,192
|
|
|
1,128
|
|
|
3,468
|
|
|
5,549
|
|
|
Commercial loans
|
322
|
|
|
9
|
|
|
7,650
|
|
|
2,002
|
|
|
Total nonaccrual loans delinquent 30 days to 59 days
|
$
|
3,416
|
|
|
3,442
|
|
|
11,964
|
|
|
7,551
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$
|
2,139
|
|
|
784
|
|
|
864
|
|
|
—
|
|
|
Home equity loans
|
389
|
|
|
724
|
|
|
280
|
|
|
—
|
|
|
Other consumer loans
|
315
|
|
|
234
|
|
|
87
|
|
|
—
|
|
|
Commercial real estate loans
|
762
|
|
|
763
|
|
|
2,036
|
|
|
2,802
|
|
|
Commercial loans
|
110
|
|
|
131
|
|
|
716
|
|
|
9,652
|
|
|
Total nonaccrual loans delinquent 60 days to 89 days
|
$
|
3,715
|
|
|
2,636
|
|
|
3,983
|
|
|
12,454
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual loans delinquent 90 days or more:
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$
|
15,810
|
|
|
17,696
|
|
|
24,625
|
|
|
24,286
|
|
|
Home equity loans
|
5,650
|
|
|
6,606
|
|
|
8,344
|
|
|
8,479
|
|
|
Other consumer loans
|
2,900
|
|
|
2,450
|
|
|
2,057
|
|
|
1,936
|
|
|
Commercial real estate loans
|
16,449
|
|
|
10,215
|
|
|
18,433
|
|
|
24,550
|
|
|
Commercial loans
|
2,459
|
|
|
4,359
|
|
|
4,298
|
|
|
9,096
|
|
|
Total nonaccrual loans delinquent 90 days or more
|
$
|
43,268
|
|
|
41,326
|
|
|
57,757
|
|
|
68,347
|
|
|
|
|
|
|
|
|
|
|
Total nonaccrual loans
|
$
|
71,662
|
|
|
79,808
|
|
|
107,221
|
|
|
120,212
|
|
|
|
December 31,
2015
|
|
December 31,
2014
|
|
December 31,
2013
|
|
December 31,
2012
|
|
Nonaccrual loans
|
$
|
71,662
|
|
|
79,808
|
|
|
107,221
|
|
|
120,212
|
|
|
Loans 90 days past maturity and still accruing
|
1,334
|
|
|
235
|
|
|
690
|
|
|
1,698
|
|
|
Nonperforming loans
|
72,996
|
|
|
80,043
|
|
|
107,911
|
|
|
121,910
|
|
|
Real estate owned, net
|
8,725
|
|
|
16,759
|
|
|
18,203
|
|
|
26,165
|
|
|
Nonperforming assets
|
$
|
81,721
|
|
|
96,802
|
|
|
126,114
|
|
|
148,075
|
|
|
|
|
|
|
|
|
|
|
Nonaccrual troubled debt restructuring *
|
$
|
21,118
|
|
|
24,459
|
|
|
28,889
|
|
|
41,166
|
|
|
Accruing troubled debt restructuring
|
29,997
|
|
|
37,329
|
|
|
50,277
|
|
|
48,278
|
|
|
Total troubled debt restructuring
|
$
|
51,115
|
|
|
61,788
|
|
|
79,166
|
|
|
89,444
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans to total loans
|
1.01
|
%
|
|
1.34
|
%
|
|
1.86
|
%
|
|
2.14
|
%
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets
|
0.91
|
%
|
|
1.25
|
%
|
|
1.60
|
%
|
|
1.86
|
%
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to total loans
|
0.87
|
%
|
|
1.13
|
%
|
|
1.23
|
%
|
|
1.28
|
%
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to nonperforming loans
|
85.86
|
%
|
|
84.35
|
%
|
|
66.12
|
%
|
|
60.06
|
%
|
|
|
* Amounts included in nonperforming loans above.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Loans by credit quality indicators as of December 31, 2015
|
|
(Dollars in thousands)
|
|
|
Pass
|
|
Special
mention *
|
|
Substandard **
|
|
Doubtful
|
|
Loss
|
|
Recorded
investment
in loans
receivable
|
|
Personal Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$
|
2,735,164
|
|
|
—
|
|
|
14,060
|
|
|
—
|
|
|
1,340
|
|
|
2,750,564
|
|
|
Home equity loans
|
1,178,735
|
|
|
—
|
|
|
8,371
|
|
|
—
|
|
|
—
|
|
|
1,187,106
|
|
|
Other consumer loans
|
508,074
|
|
|
—
|
|
|
2,543
|
|
|
—
|
|
|
—
|
|
|
510,617
|
|
|
Total Personal Banking
|
4,421,973
|
|
|
—
|
|
|
24,974
|
|
|
—
|
|
|
1,340
|
|
|
4,448,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
2,170,951
|
|
|
53,390
|
|
|
126,978
|
|
|
115
|
|
|
—
|
|
|
2,351,434
|
|
|
Commercial loans
|
359,403
|
|
|
23,730
|
|
|
38,157
|
|
|
1,110
|
|
|
—
|
|
|
422,400
|
|
|
Total Business Banking
|
2,530,354
|
|
|
77,120
|
|
|
165,135
|
|
|
1,225
|
|
|
—
|
|
|
2,773,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,952,327
|
|
|
77,120
|
|
|
190,109
|
|
|
1,225
|
|
|
1,340
|
|
|
7,222,121
|
|
|
|
* - Includes $7.6 million of acquired loans.
|
|
** - Includes $18.6 million of acquired loans.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Loans by credit quality indicators as of December 31, 2014
|
|
(Dollars in thousands)
|
|
|
Pass
|
|
Special
mention
|
|
Substandard
|
|
Doubtful
|
|
Loss
|
|
Recorded
investment
in loans
receivable
|
|
Personal Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
$
|
2,507,269
|
|
|
—
|
|
|
12,763
|
|
|
—
|
|
|
1,424
|
|
|
2,521,456
|
|
|
Home equity loans
|
1,059,525
|
|
|
—
|
|
|
6,606
|
|
|
—
|
|
|
—
|
|
|
1,066,131
|
|
|
Other consumer loans
|
240,947
|
|
|
—
|
|
|
1,797
|
|
|
—
|
|
|
—
|
|
|
242,744
|
|
|
Total Personal Banking
|
3,807,741
|
|
|
—
|
|
|
21,166
|
|
|
—
|
|
|
1,424
|
|
|
3,830,331
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Banking:
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate loans
|
1,570,649
|
|
|
36,908
|
|
|
145,502
|
|
|
505
|
|
|
—
|
|
|
1,753,564
|
|
|
Commercial loans
|
333,854
|
|
|
23,690
|
|
|
46,280
|
|
|
2,172
|
|
|
—
|
|
|
405,996
|
|
|
Total Business Banking
|
1,904,503
|
|
|
60,598
|
|
|
191,782
|
|
|
2,677
|
|
|
—
|
|
|
2,159,560
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,712,244
|
|
|
60,598
|
|
|
212,948
|
|
|
2,677
|
|
|
1,424
|
|
|
5,989,891
|
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Delinquency
|
|
(Dollars in thousands)
|
|
|
|
Loan delinquency schedule
|
|
(Number of loans and dollar amount of loans)
|
|
|
December 31,
2015
|
|
*
|
|
December 31,
2014
|
|
*
|
|
December 31,
2013
|
|
*
|
|
December 31,
2012
|
|
*
|
|
Loans delinquent 30
days to 59 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
loans
|
349
|
|
|
$
|
25,943
|
|
|
0.9
|
%
|
|
377
|
|
|
$
|
27,443
|
|
|
1.1
|
%
|
|
374
|
|
|
$
|
27,486
|
|
|
1.1
|
%
|
|
430
|
|
|
$
|
32,921
|
|
|
1.4
|
%
|
|
Home equity loans
|
173
|
|
|
5,806
|
|
|
0.5
|
%
|
|
161
|
|
|
5,752
|
|
|
0.5
|
%
|
|
213
|
|
|
6,946
|
|
|
0.6
|
%
|
|
224
|
|
|
6,534
|
|
|
0.6
|
%
|
|
Consumer loans
|
1,234
|
|
|
7,101
|
|
|
1.4
|
%
|
|
1,193
|
|
|
5,572
|
|
|
2.3
|
%
|
|
1,010
|
|
|
4,515
|
|
|
2.0
|
%
|
|
1,122
|
|
|
5,456
|
|
|
2.4
|
%
|
|
Commercial real estate loans
|
48
|
|
|
24,877
|
|
|
1.1
|
%
|
|
56
|
|
|
4,956
|
|
|
0.3
|
%
|
|
73
|
|
|
8,449
|
|
|
0.5
|
%
|
|
87
|
|
|
13,001
|
|
|
0.8
|
%
|
|
Commercial loans
|
31
|
|
|
2,868
|
|
|
0.7
|
%
|
|
26
|
|
|
2,262
|
|
|
0.6
|
%
|
|
34
|
|
|
9,243
|
|
|
2.3
|
%
|
|
41
|
|
|
3,233
|
|
|
0.8
|
%
|
|
Total loans delinquent 30 days to 59 days
|
1,835
|
|
|
$
|
66,595
|
|
|
0.9
|
%
|
|
1,813
|
|
|
$
|
45,985
|
|
|
0.8
|
%
|
|
1,704
|
|
|
$
|
56,639
|
|
|
1.0
|
%
|
|
1,904
|
|
|
$
|
61,145
|
|
|
1.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 60 days to 89 days:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
100
|
|
|
$
|
7,790
|
|
|
0.3
|
%
|
|
100
|
|
|
$
|
6,970
|
|
|
0.3
|
%
|
|
103
|
|
|
$
|
7,568
|
|
|
0.3
|
%
|
|
100
|
|
|
$
|
9,387
|
|
|
0.4
|
%
|
|
Home equity loans
|
50
|
|
|
2,478
|
|
|
0.2
|
%
|
|
49
|
|
|
1,672
|
|
|
0.2
|
%
|
|
67
|
|
|
2,243
|
|
|
0.2
|
%
|
|
65
|
|
|
1,977
|
|
|
0.2
|
%
|
|
Consumer loans
|
521
|
|
|
2,521
|
|
|
0.5
|
%
|
|
525
|
|
|
2,435
|
|
|
1.0
|
%
|
|
507
|
|
|
1,866
|
|
|
0.8
|
%
|
|
448
|
|
|
1,830
|
|
|
0.8
|
%
|
|
Commercial real estate loans
|
21
|
|
|
8,228
|
|
|
0.3
|
%
|
|
21
|
|
|
2,038
|
|
|
0.1
|
%
|
|
35
|
|
|
3,968
|
|
|
0.2
|
%
|
|
33
|
|
|
4,596
|
|
|
0.3
|
%
|
|
Commercial loans
|
7
|
|
|
598
|
|
|
0.1
|
%
|
|
4
|
|
|
209
|
|
|
0.1
|
%
|
|
16
|
|
|
1,555
|
|
|
0.4
|
%
|
|
17
|
|
|
10,158
|
|
|
2.6
|
%
|
|
Total loans delinquent 60 days to 89 days
|
699
|
|
|
$
|
21,615
|
|
|
0.3
|
%
|
|
699
|
|
|
$
|
13,324
|
|
|
0.2
|
%
|
|
728
|
|
|
$
|
17,200
|
|
|
0.3
|
%
|
|
663
|
|
|
$
|
27,948
|
|
|
0.5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans delinquent 90 days or more: **
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage loans
|
215
|
|
|
$
|
16,350
|
|
|
0.6
|
%
|
|
225
|
|
|
$
|
17,696
|
|
|
0.7
|
%
|
|
273
|
|
|
$
|
24,625
|
|
|
1.0
|
%
|
|
266
|
|
|
$
|
24,286
|
|
|
1.0
|
%
|
|
Home equity loans
|
143
|
|
|
6,112
|
|
|
0.5
|
%
|
|
139
|
|
|
6,606
|
|
|
0.6
|
%
|
|
171
|
|
|
8,344
|
|
|
0.8
|
%
|
|
175
|
|
|
8,479
|
|
|
0.8
|
%
|
|
Consumer loans
|
523
|
|
|
2,926
|
|
|
0.6
|
%
|
|
539
|
|
|
2,450
|
|
|
1.0
|
%
|
|
470
|
|
|
2,057
|
|
|
0.9
|
%
|
|
427
|
|
|
1,936
|
|
|
0.8
|
%
|
|
Commercial real estate loans
|
113
|
|
|
19,031
|
|
|
0.8
|
%
|
|
102
|
|
|
10,215
|
|
|
0.6
|
%
|
|
124
|
|
|
18,433
|
|
|
1.1
|
%
|
|
146
|
|
|
24,550
|
|
|
1.5
|
%
|
|
Commercial loans
|
25
|
|
|
2,599
|
|
|
0.6
|
%
|
|
25
|
|
|
4,359
|
|
|
1.1
|
%
|
|
31
|
|
|
4,298
|
|
|
1.1
|
%
|
|
61
|
|
|
9,096
|
|
|
2.3
|
%
|
|
Total loans delinquent 90 days or more
|
1,019
|
|
|
$
|
47,018
|
|
|
0.7
|
%
|
|
1,030
|
|
|
$
|
41,326
|
|
|
0.7
|
%
|
|
1,069
|
|
|
$
|
57,757
|
|
|
1.0
|
%
|
|
1,075
|
|
|
$
|
68,347
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans delinquent
|
3,553
|
|
|
$
|
135,228
|
|
|
1.9
|
%
|
|
3,542
|
|
|
$
|
100,635
|
|
|
1.7
|
%
|
|
3,501
|
|
|
$
|
131,596
|
|
|
2.3
|
%
|
|
3,642
|
|
|
$
|
157,440
|
|
|
2.8
|
%
|
|
|
* - Represents delinquency, in dollars, divided by the respective total amount of that type of loan outstanding.
|
|
** - Includes $3.7 million of purchased credit impaired loans.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Allowance for loan losses
|
|
(Dollars in thousands)
|
|
|
Quarter ended
December 31,
|
|
Year ended
December 31,
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
Allowance for loan losses
|
|
|
|
|
|
|
|
|
Beginning balance
|
$
|
60,547
|
|
|
71,650
|
|
|
67,518
|
|
|
71,348
|
|
|
Provision
|
4,595
|
|
|
1,078
|
|
|
9,712
|
|
|
20,314
|
|
|
Charge-offs residential mortgage
|
(171)
|
|
|
(487)
|
|
|
(1,126)
|
|
|
(2,181)
|
|
|
Charge-offs home equity
|
(1,097)
|
|
|
(493)
|
|
|
(2,424)
|
|
|
(1,783)
|
|
|
Charge-offs other consumer
|
(2,561)
|
|
|
(1,813)
|
|
|
(8,274)
|
|
|
(6,423)
|
|
|
Charge-offs commercial real estate
|
(1,216)
|
|
|
(2,931)
|
|
|
(6,326)
|
|
|
(8,422)
|
|
|
Charge-offs commercial
|
(508)
|
|
|
(1,070)
|
|
|
(8,183)
|
|
|
(11,936)
|
|
|
Recoveries
|
3,083
|
|
|
1,584
|
|
|
11,775
|
|
|
6,601
|
|
|
Ending balance
|
$
|
62,672
|
|
|
67,518
|
|
|
62,672
|
|
|
67,518
|
|
|
|
|
|
|
|
|
|
|
Net charge-offs to average loans, annualized
|
0.14
|
%
|
|
0.35
|
%
|
|
0.23
|
%
|
|
0.41
|
%
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Average balance sheet
|
|
(Dollars in thousands)
|
|
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
|
|
|
Quarter ended December 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
Avg.
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable (a) (b) (d)
|
$
|
7,148,603
|
|
|
81,428
|
|
|
4.52
|
%
|
|
$
|
5,961,303
|
|
|
71,669
|
|
|
4.77
|
%
|
|
Mortgage-backed securities (c)
|
519,736
|
|
|
2,301
|
|
|
1.77
|
%
|
|
536,990
|
|
|
2,357
|
|
|
1.76
|
%
|
|
Investment securities (c) (d)
|
427,363
|
|
|
2,394
|
|
|
2.24
|
%
|
|
495,554
|
|
|
3,289
|
|
|
2.65
|
%
|
|
FHLB stock
|
38,651
|
|
|
499
|
|
|
5.12
|
%
|
|
36,315
|
|
|
383
|
|
|
4.22
|
%
|
|
Other interest-earning deposits
|
40,410
|
|
|
13
|
|
|
0.13
|
%
|
|
251,229
|
|
|
164
|
|
|
0.26
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
8,174,763
|
|
|
86,635
|
|
|
4.20
|
%
|
|
7,281,391
|
|
|
77,862
|
|
|
4.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning assets (e)
|
747,317
|
|
|
|
|
|
|
546,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
7,828,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
|
$
|
1,378,377
|
|
|
871
|
|
|
0.25
|
%
|
|
$
|
1,209,117
|
|
|
828
|
|
|
0.27
|
%
|
|
Interest-bearing demand deposits
|
1,083,524
|
|
|
157
|
|
|
0.06
|
%
|
|
884,542
|
|
|
147
|
|
|
0.07
|
%
|
|
Money market deposit accounts
|
1,279,181
|
|
|
873
|
|
|
0.27
|
%
|
|
1,182,041
|
|
|
797
|
|
|
0.27
|
%
|
|
Time deposits
|
1,720,895
|
|
|
4,534
|
|
|
1.05
|
%
|
|
1,506,526
|
|
|
4,334
|
|
|
1.14
|
%
|
|
Borrowed funds (f)
|
906,574
|
|
|
6,730
|
|
|
2.95
|
%
|
|
894,509
|
|
|
6,694
|
|
|
2.97
|
%
|
|
Junior subordinated debentures
|
116,626
|
|
|
1,321
|
|
|
4.43
|
%
|
|
103,094
|
|
|
1,182
|
|
|
4.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
6,485,177
|
|
|
14,486
|
|
|
0.89
|
%
|
|
5,779,829
|
|
|
13,982
|
|
|
0.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
1,145,276
|
|
|
|
|
|
|
897,082
|
|
|
|
|
|
|
Noninterest bearing liabilities
|
133,323
|
|
|
|
|
|
|
79,850
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
7,763,776
|
|
|
|
|
|
|
6,756,761
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,158,304
|
|
|
|
|
|
|
1,071,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
7,828,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread
|
|
|
72,149
|
|
|
3.31
|
%
|
|
|
|
63,880
|
|
|
3.32
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin
|
$
|
1,689,586
|
|
|
|
|
3.53
|
%
|
|
$
|
1,501,562
|
|
|
|
|
3.51
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-
bearing liabilities
|
1.26
|
X
|
|
|
|
|
|
1.26
|
X
|
|
|
|
|
|
|
|
|
(a)
|
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
|
|
(b)
|
Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
|
|
(c)
|
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(d)
|
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
|
|
(e)
|
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(f)
|
Average balances include FHLB borrowings and collateralized borrowings.
|
|
(g)
|
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.49% and 4.74%, respectively, Investment securities - 1.82% and 2.02%, respectively, Interest-earning assets - 4.16% and 4.21%, respectively. GAAP basis net interest rate spreads were 3.27% and 3.25%, respectively, and GAAP basis net interest margins were 3.48% and 3.44%, respectively.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Average balance sheet
|
|
(Dollars in thousands)
|
|
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
|
|
|
Year ended December 31,
|
|
2015
|
|
2014
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
Avg.
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable (a) (b) (d)
|
$
|
6,460,078
|
|
|
300,638
|
|
|
4.65
|
%
|
|
$
|
5,883,244
|
|
|
284,107
|
|
|
4.83
|
%
|
|
Mortgage-backed securities (c)
|
500,797
|
|
|
8,823
|
|
|
1.76
|
%
|
|
581,906
|
|
|
10,320
|
|
|
1.77
|
%
|
|
Investment securities (c) (d)
|
469,568
|
|
|
11,155
|
|
|
2.38
|
%
|
|
499,718
|
|
|
13,792
|
|
|
2.76
|
%
|
|
FHLB stock (h)
|
37,500
|
|
|
1,788
|
|
|
4.77
|
%
|
|
41,975
|
|
|
1,809
|
|
|
4.33
|
%
|
|
Other interest-earning deposits
|
179,201
|
|
|
431
|
|
|
0.24
|
%
|
|
325,201
|
|
|
837
|
|
|
0.25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
7,647,144
|
|
|
322,835
|
|
|
4.22
|
%
|
|
7,332,044
|
|
|
310,865
|
|
|
4.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning assets (e)
|
677,449
|
|
|
|
|
|
|
561,107
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
8,324,593
|
|
|
|
|
|
|
$
|
7,893,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
|
$
|
1,300,102
|
|
|
3,387
|
|
|
0.26
|
%
|
|
$
|
1,221,304
|
|
|
3,286
|
|
|
0.27
|
%
|
|
Interest-bearing demand deposits
|
976,789
|
|
|
568
|
|
|
0.06
|
%
|
|
882,980
|
|
|
587
|
|
|
0.07
|
%
|
|
Money market deposit accounts
|
1,202,143
|
|
|
3,222
|
|
|
0.27
|
%
|
|
1,181,235
|
|
|
3,174
|
|
|
0.27
|
%
|
|
Time deposits
|
1,540,905
|
|
|
16,878
|
|
|
1.10
|
%
|
|
1,575,595
|
|
|
18,275
|
|
|
1.16
|
%
|
|
Borrowed funds (f)
|
925,683
|
|
|
27,347
|
|
|
2.95
|
%
|
|
881,118
|
|
|
26,574
|
|
|
3.02
|
%
|
|
Junior subordinated debentures
|
108,507
|
|
|
4,925
|
|
|
4.48
|
%
|
|
103,094
|
|
|
4,691
|
|
|
4.49
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
6,054,129
|
|
|
56,327
|
|
|
0.93
|
%
|
|
5,845,326
|
|
|
56,587
|
|
|
0.97
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
1,001,263
|
|
|
|
|
|
|
864,322
|
|
|
|
|
|
|
Noninterest bearing liabilities
|
166,530
|
|
|
|
|
|
|
94,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
7,221,922
|
|
|
|
|
|
|
6,803,946
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,102,671
|
|
|
|
|
|
|
1,089,205
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
|
8,324,593
|
|
|
|
|
|
|
$
|
7,893,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread
|
|
|
266,508
|
|
|
3.29
|
%
|
|
|
|
254,278
|
|
|
3.27
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin
|
$
|
1,593,015
|
|
|
|
|
3.49
|
%
|
|
$
|
1,486,718
|
|
|
|
|
3.47
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-
bearing liabilities
|
1.26
|
X
|
|
|
|
|
|
1.25
|
X
|
|
|
|
|
|
|
|
|
(a)
|
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
|
|
(b)
|
Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
|
|
(c)
|
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(d)
|
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
|
|
(e)
|
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(f)
|
Average balances include FHLB borrowings and collateralized borrowings.
|
|
(g)
|
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.62% and 4.79%, respectively, Investment securities - 1.88% and 2.08%, respectively, Interest-earning assets - 4.17% and 4.17%, respectively. GAAP basis net interest rate spreads were 3.24% and 3.20%, respectively, and GAAP basis net interest margins were 3.43% and 3.39%, respectively.
|
|
(h)
|
Excludes $1.0 million special dividend paid in February 2015 from the average yield calculation.
|
|
Northwest Bancshares, Inc. and Subsidiaries
|
|
Average balance sheet
|
|
(Dollars in thousands)
|
|
|
The following table sets forth certain information relating to the Company's average balance sheet and reflects the average yield on assets and average cost of liabilities for the periods indicated. Such yields and costs are derived by dividing income or expense by the average balance of assets or liabilities, respectively, for the periods presented. Average balances are calculated using daily averages.
|
|
|
Quarter ended
December 31, 2015
|
|
Quarter ended
September 30, 2015
|
|
|
|
|
|
Avg.
|
|
|
|
|
|
Avg.
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Average
Balance
|
|
Interest
|
|
Yield/
Cost (g)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable (a) (b) (d)
|
$
|
7,148,603
|
|
|
81,428
|
|
|
4.52
|
%
|
|
$
|
6,584,664
|
|
|
76,583
|
|
|
4.61
|
%
|
|
Mortgage-backed securities (c)
|
519,736
|
|
|
2,301
|
|
|
1.77
|
%
|
|
498,757
|
|
|
2,230
|
|
|
1.79
|
%
|
|
Investment securities (c) (d)
|
427,363
|
|
|
2,394
|
|
|
2.24
|
%
|
|
482,666
|
|
|
2,754
|
|
|
2.28
|
%
|
|
FHLB stock
|
38,651
|
|
|
499
|
|
|
5.12
|
%
|
|
39,552
|
|
|
451
|
|
|
4.52
|
%
|
|
Other interest-earning deposits
|
40,410
|
|
|
13
|
|
|
0.13
|
%
|
|
162,041
|
|
|
99
|
|
|
0.24
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-earning assets
|
8,174,763
|
|
|
86,635
|
|
|
4.20
|
%
|
|
7,767,680
|
|
|
82,117
|
|
|
4.19
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest earning assets (e)
|
747,317
|
|
|
|
|
|
|
846,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
8,614,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and shareholders' equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings deposits
|
$
|
1,378,377
|
|
|
871
|
|
|
0.25
|
%
|
|
$
|
1,324,620
|
|
|
865
|
|
|
0.26
|
%
|
|
Interest-bearing demand deposits
|
1,083,524
|
|
|
157
|
|
|
0.06
|
%
|
|
1,022,585
|
|
|
149
|
|
|
0.06
|
%
|
|
Money market deposit accounts
|
1,279,181
|
|
|
873
|
|
|
0.27
|
%
|
|
1,217,122
|
|
|
825
|
|
|
0.27
|
%
|
|
Time deposits
|
1,720,895
|
|
|
4,534
|
|
|
1.05
|
%
|
|
1,577,159
|
|
|
4,324
|
|
|
1.09
|
%
|
|
Borrowed funds (f)
|
906,574
|
|
|
6,730
|
|
|
2.95
|
%
|
|
906,410
|
|
|
6,713
|
|
|
2.94
|
%
|
|
Junior subordinated debentures
|
116,626
|
|
|
1,321
|
|
|
4.43
|
%
|
|
111,213
|
|
|
1,274
|
|
|
4.48
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities
|
6,485,177
|
|
|
14,486
|
|
|
0.89
|
%
|
|
6,159,109
|
|
|
14,150
|
|
|
0.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand deposits
|
1,145,276
|
|
|
|
|
|
|
1,054,270
|
|
|
|
|
|
|
Noninterest bearing liabilities
|
133,323
|
|
|
|
|
|
|
275,435
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
7,763,776
|
|
|
|
|
|
|
7,488,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
|
1,158,304
|
|
|
|
|
|
|
1,125,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and shareholders' equity
|
$
|
8,922,080
|
|
|
|
|
|
|
$
|
8,614,119
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income/ Interest rate spread
|
|
|
72,149
|
|
|
3.31
|
%
|
|
|
|
67,967
|
|
|
3.28
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets/ Net interest margin
|
$
|
1,689,586
|
|
|
|
|
3.53
|
%
|
|
$
|
1,608,571
|
|
|
|
|
3.50
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratio of interest-earning assets to interest-
bearing liabilities
|
1.26
|
X
|
|
|
|
|
|
1.26
|
X
|
|
|
|
|
|
|
|
|
(a)
|
Average gross loans receivable includes loans held as available-for-sale and loans placed on nonaccrual status.
|
|
(b)
|
Interest income includes accretion/ amortization of deferred loan fees/ expenses, which was not material.
|
|
(c)
|
Average balances do not include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(d)
|
Interest income on tax-free investment securities and tax-free loans are presented on a fully taxable equivalent basis.
|
|
(e)
|
Average balances include the effect of unrealized gains or losses on securities held as available-for-sale.
|
|
(f)
|
Average balances include FHLB borrowings and collateralized borrowings.
|
|
(g)
|
Shown on a FTE basis. GAAP basis yields for the periods indicated were: Loans - 4.49% and 4.58%, respectively, Investment securities - 1.82% and 1.84%, respectively, Interest-earning assets - 4.16% and 4.14%, respectively. GAAP basis net interest rate spreads were 3.27% and 3.23%, respectively, and GAAP basis net interest margins were 3.48% and 3.45%, respectively.
|
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/northwest-bancshares-inc-announces-fourth-quarter-2015-earnings-and-increase-in-quarterly-dividend-300209129.html
SOURCE Northwest Bancshares, Inc.